[Adopted 12-19-2000 by Ord. No. 5373]
This article shall be known as, and may be cited
as, the "Locally Imposed and Administered Tax Rights and Responsibility
Ordinance."
The provisions of this article shall apply to
the City's procedures in connection with all of the City's locally
imposed and administered taxes.
Certain words or terms herein shall have the
meanings ascribed to them as follows:
The Local Government Taxpayers' Bill of Rights Act (50 ILCS
45/1 et seq.).
The City of Crystal Lake of McHenry County, Illinois.
The City's Mayor and City Council.
The City Manager or his/her designated representative to
conduct hearings and to issue final determinations regarding the collection
of all locally imposed and administered taxes.
Each tax imposed by the City that is collected or administered
by the City and not an agency or department of the state. It does
not include any taxes imposed upon real property under the Property
Tax Code or fees collected by the City other than telecommunications
system infrastructure maintenance fees.
The City's City Manager or his/her designated representative
who is charged with the administration and collection of the locally
imposed and administered taxes, including staff, employees or agents
to the extent they are authorized by the local tax administrator to
act in the local tax administrator's stead. The local tax administrator
shall have the authority to implement the terms of this article to
give full effect to this article. The exercise of such authority by
the local tax administrator shall not be inconsistent with this article
and the Act.
Each audit notice, collection notice or other similar notice
or communication in connection with each of the City's locally imposed
and administered taxes.
Each ordinance adopted by the City that imposes any locally
imposed and administered tax.
Any person required to pay any locally imposed and administered
tax and generally includes the person upon whom the legal incidence
of such tax is placed, and with respect to consumer taxes includes
the business or entity required to collect and pay the locally imposed
and administered tax to the City.
Unless otherwise provided, whenever notice is
required to be given, the notice is to be in writing and mailed not
less than seven calendar days prior to the day fixed for any applicable
hearing, audit or other scheduled act of the local tax administrator.
The notice shall be sent by the local tax administrator as follows:
Any notice, payment, remittance or other filing
required to be made to the City pursuant to any tax ordinance shall
be considered late unless it is:
Any payment or remittance received for a tax
period shall be applied in the following order:
A.Â
The City shall not refund or credit any taxes voluntarily
paid without written protest at the time of payment in the event that
a locally imposed and administered tax is declared invalidly enacted
or unconstitutional by a court of competent jurisdiction. However,
a taxpayer shall not be deemed to have paid the tax voluntarily if
the taxpayer lacked knowledge of the facts upon which to protest the
taxes at the time of payment or if the taxpayer paid the taxes.
B.Â
The statute of limitations on a claim for credit or
refund shall be four or less years after the end of the calendar year
in which payment in error was made. The City shall not grant a credit
or refund of locally imposed and administered taxes, interest, or
penalties to a person who has not paid the amounts directly to the
City.
C.Â
The procedure for claiming a credit or refund of locally
imposed and administered taxes, interest or penalties paid in error
shall be as follows:
(1)Â
The taxpayer shall submit to the local tax administrator
in writing a claim for credit or refund together with a statement
specifying:
(a)Â
The name of the locally imposed and administered
tax subject to the claim;
(b)Â
The tax period for the locally imposed and administered
tax subject to the claim;
(c)Â
The date of the tax payment subject to the claim
and the canceled check or receipt for the payment;
(d)Â
The taxpayer's recalculation, accompanied by
an amended or revised tax return, in connection with the claim; and
(e)Â
A request for either a refund or a credit in
connection with the claim to be applied to the amount of tax, interest
and penalties overpaid, and, as applicable, related interest on the
amount overpaid; provided, however, that there shall be no refund
and only a credit given in the event the taxpayer owes any monies
to the City.
(3)Â
In the event the local tax administrator grants, in
whole or in part, a claim for refund or credit, the amount of the
grant for refund or credit shall bear interest at the rate of 5% per
annum, based on a year of 365 days and the number of days elapsed,
from the date of the overpayment to the date of mailing of a refund
check or the grant of a credit.
A.Â
Any request for proposed audit pursuant to any local
administered tax shall comply with the notice requirements of this
article. Each notice of audit shall contain the following information:
B.Â
Any audit shall be conducted during normal business
hours, and if the date and time selected by the local tax administrator
is not agreeable to the taxpayer, another date and time may be requested
by the taxpayer within 30 days after the originally designated audit
and during normal business hours.
C.Â
The taxpayer may request an extension of time to have
an audit conducted. The audit shall be conducted not less than seven
days nor more than 30 days from the date the notice is given, unless
the taxpayer and the local tax administrator agree to some other convenient
time. In the event the taxpayer is unable to comply with the audit
on the date in question, the taxpayer may request another date within
the 30 days, approved in writing, that is convenient to the taxpayer
and the local tax administrator.
D.Â
Every taxpayer shall keep accurate books and records
of the taxpayer's business or activities, including original source
documents and books of entry denoting the transactions which had given
rise or may have given rise to any tax liability, exemption or deduction.
All books shall be kept in the English language and shall be subject
to and available for inspection by the City.
E.Â
It is the duty and responsibility of every taxpayer
to make available its books and records for inspection by the City.
If the taxpayer or tax collector fails to provide the documents necessary
for audit within the time provided, the local tax administrator may
issue a tax determination and assessment based on the tax administrator's
determination of the best estimate of the taxpayer's tax liability.
F.Â
If an audit determines there has been an overpayment
of a locally imposed and administered tax as a result of the audit,
written notice of the amount of overpayment shall be given to the
taxpayer within 30 days of the City's determination of the amount
of overpayment.
G.Â
In the event a tax payment was submitted to the incorrect
local governmental entity, the local tax administrator shall notify
the local governmental entity imposing such tax.
A.Â
The local tax administrator shall send written notice
to a taxpayer upon the local tax administrator's issuance of a protestable
notice of tax due, a bill, a claim denial, or a notice of claim reduction
regarding any tax. The notice shall include the following information:
B.Â
A taxpayer who receives written notice from the local
tax administrator of a determination of tax due or assessment may
file with the local tax administrator a written protest and petition
for hearing, setting forth the basis of the taxpayer's request for
a hearing. The written protest and petition for hearing must be filed
with the local tax administrator within 45 days of receipt of the
written notice of the tax determination and assessment.
C.Â
If a timely written notice and petition for hearing
is filed, the local tax administrator shall fix the time and place
for hearing and shall give written notice to the taxpayer. The hearing
shall be scheduled for a date within 14 days of receipt of the written
protest and petition for hearing, unless the taxpayer requests a later
date convenient to all parties.
D.Â
If a written protest and petition for hearing is not
filed within the forty-five-day period, the tax determination, audit
or assessment shall become a final bill due and owing without further
notice.
E.Â
Upon the showing of reasonable cause by the taxpayer
and the full payment of the contested tax liability along with interest
accrued as of the due date of the tax, the local tax administrator
may reopen or extend the time for filing a written protest and petition
for hearing. In no event shall the time for filing a written protest
and petition for hearing be reopened or extended for more than 90
days after the expiration of the forty-five-day period.
A.Â
Whenever a taxpayer or a tax collector has filed a timely written protest and petition for hearing under § 467-27, above, the local tax administrator shall conduct a hearing regarding any appeal.
B.Â
No continuances shall be granted except in cases where
a continuance is absolutely necessary to protect the rights of the
taxpayer. Lack of preparation shall not be grounds for a continuance.
Any continuance granted shall not exceed 14 days.
C.Â
At the hearing the hearing officer shall preside and
shall hear testimony and accept any evidence relevant to the tax determination,
audit or assessment. The strict rules of evidence applicable to judicial
proceedings shall not apply.
D.Â
At the conclusion of the hearing, the hearing officer
shall make a written determination on the basis of the evidence presented
at the hearing. The taxpayer or tax collector shall be provided with
a copy of the written decision.
In the event a determination has been made that
a tax is due and owing, through audit, assessment or other bill sent,
the tax must be paid within the time frame otherwise indicated.
A.Â
Interest. The City hereby provides for the amount
of interest to be assessed on a late payment, underpayment, or nonpayment
of the tax, to be 12% per annum, based on a year of 365 days and the
number of days elapsed.
B.Â
Late filing and payment penalties. If a tax return
is not filed within the time and manner provided by the controlling
tax ordinance, a late filing penalty of 5% of the amount of tax required
to be shown as due on a return shall be imposed; and a late payment
penalty of 5% of the tax due shall be imposed. If no return is filed
within the time or manner provided by the controlling tax ordinance
and prior to the City issuing a notice of tax delinquency or notice
of tax liability, then a failure to file penalty shall be assessed
equal to 10% of the total tax due for the applicable reporting period
for which the return was required to be filed. A late filing or payment
penalty shall not apply if a failure to file penalty is imposed by
the controlling ordinance.
The local tax administrator shall have the authority
to waive or abate any late filing penalty, late payment penalty or
failure to file penalty if the local tax administrator shall determine
reasonable cause exists for delay or failure to make a filing.
The City may enter into an installment contract
with the taxpayer for the payment of taxes under the controlling tax
ordinance. The local tax administrator may not cancel any installment
contract so entered unless the taxpayer fails to pay any amount due
and owing. Upon written notice by the local tax administrator that
the payment is 30 days delinquent, the taxpayer shall have 14 working
days to cure any delinquency. If the taxpayer fails to cure the delinquency
within the fourteen-day period or fails to demonstrate good faith
in restructuring the installment contract with the local administrator,
the installment contract shall be canceled without further notice
to the taxpayer.
The City, through the local tax administrator,
shall review all tax returns in a prompt and timely manner and inform
taxpayers of any amounts due and owing. The taxpayer shall have 45
days after receiving notice of the reviewed tax returns to make any
request for refund or provide any tax still due and owing.
A.Â
No determination of tax due and owing may be issued
more than four years maximum after the end of the calendar year for
which the return for the applicable period was filed or for the calendar
year in which the return for the applicable period was due, whichever
occurs later.
B.Â
If any tax return is not filed or if, during any four-year
period for which a notice of tax determination or assessment may be
issued by the City, the tax paid was less than 75% of the tax due,
the statute of limitations shall be six years maximum after the end
of the calendar year in which return for the applicable period was
due or end of the calendar year in which the return for the applicable
period was filed.
C.Â
No statute of limitations shall not apply if a fraudulent
tax return was filed by the taxpayer.
For any locally imposed and administered tax
for which a taxpayer has not received a written notice of an audit,
investigation, or assessment from the local tax administrator, a taxpayer
is entitled to file an application with the local tax administrator
for a voluntary disclosure of the tax due. A taxpayer filing a voluntary
disclosure application must agree to pay the amount of tax due, along
with interest of 1% per month, for all periods prior to the filing
of the application but not more than four years before the date of
filing the application. A taxpayer filing a valid voluntary disclosure
application may not be liable for any additional tax, interest, or
penalty for any period before the date the application was filed.
However, if the taxpayer incorrectly determined and underpaid the
amount of tax due, the taxpayer is liable for the underpaid tax along
with applicable interest on the underpaid tax, unless the underpayment
was the result of fraud on the part of the taxpayer, in which case
the application shall be deemed invalid and void. The payment of tax
and interest must be made by no later than 90 days after the filing
of the voluntary disclosure application or the date agreed to by the
local tax administrator. However, any additional amounts owed as a
result of an underpayment of tax and interest previously paid under
this section must be paid within 90 days after a final determination
and the exhaustion of all appeals of the additional amount owed or
the date agreed to by the local tax administrator, whichever is longer
.
Any locally administered tax ordinance shall
be published via normal or standard publishing requirements. The posting
of a tax ordinance on the Internet shall satisfy the publication requirements.
Copies of all tax ordinances shall be made available to the public
upon request at the City Clerk's office in the municipal complex.
The local tax administrator shall establish
an internal review procedure regarding any liens filed against any
taxpayers for unpaid taxes. Upon a determination by the local tax
administrator that the lien is valid, the lien shall remain in full
force and effect. If the lien is determined to be improper, the local
tax administrator shall:
This article shall be liberally construed and
administered, to supplement all of the City's tax ordinances. To the
extent that any tax ordinance is in conflict with or inconsistent
with this article, this article shall be controlling.